The latest price rise in August has prompted many households to reconsider their subscriptions, leading to lower customer satisfaction and higher cancellation rates. Although Netflix still offers a strong content selection, experts warn that the platform may be reaching a point where viewers are prioritising affordability over exclusive content.
Since its launch in Australia in 2015, Netflix has increased prices six times. The cost of its premium plan is now $28.99 per month, more than double its original price, making it the most expensive streaming service in the country. Data from a global research firm shows that net satisfaction among Netflix's ad-free users has dropped to just 15%, below the average for streaming services.
Churn data highlights this trend. In Q3 2025, 7.7% of users cancelled their subscriptions compared to 6% in Q2. Nearly 9% more are expected to leave in the coming months. In contrast, ad-supported plans have grown by 77% year on year, and usage of free streaming platforms rose by 39%. Australian viewers appear to be prioritising value, shifting toward more flexible and affordable services.
Despite these challenges, Netflix still maintains a higher overall satisfaction score than its competitors due to its strong catalogue of original content. However, this may not be enough to sustain loyalty as households cut spending. The government's upcoming rules requiring local content may also pose added strain, with Netflix potentially needing to invest close to $100 million in Australian productions, based on its estimated revenue and share of the local market.
Competitors are gaining ground. Paramount+ secured the largest share of new subscribers in Q3 2025. HBO Max is also growing, and Stan Sport experienced a boost after obtaining Premier League broadcast rights. As viewer preferences evolve and regulations tighten, Netflix's market dominance faces increased pressure.
